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WASHINGTON — The Federal Reserve is imposing more penalties on Wells Fargo, freezing the bank's growth until it can prove it has improved its internal controls.

In addition, the San Francisco-based bank agreed to replace three board members by April and a fourth by the end of this year.

The new penalties were announced late Friday on Fed Chair Janet Yellen's last day at the central bank.

In a statement, she said that the Fed "cannot tolerate pervasive and persistent misconduct at any bank."

Wells Fargo has admitted that employees opened more than 3 million fake accounts in order to meet sales quotas. It ended up paying $185 million to regulators and settled a class-action suit for $142 million.